Most people glance at the bottom number on their payslip, the net pay, and ignore everything above it. That's a mistake. Your payslip is the only document that shows whether your employer is deducting the right amounts for tax, pension, and social insurance. Get it wrong and you're either overpaying tax (leaving money on the table) or underpaying (which creates problems at tax filing time).
Source check, June 17, 2026. The payslip layout is different in every African country because the statutory deductions are different. This refresh uses current Nigeria PAYE reform summaries, KRA payroll guidance, Kenya AHL notices, SARS 2026/27 tax tables and current South African medical tax credit values.
This article walks through the exact flow, from gross salary to net pay, for Nigeria, Kenya, and South Africa. If something on your payslip doesn't match what's described here, that's a red flag worth investigating.
One important caveat: payslips follow the tax year and payroll setup in each country. South Africa's 2026/27 employee tax year starts on 1 March 2026, Kenya applies monthly payroll remittance cycles, and Nigeria's new personal income tax rules are tied to the January 2026 reform start. If your payslip spans a transition month, compare it against the correct period rather than only the calendar year.
Nigeria: from gross to net
Here's how your Nigerian payslip should flow. Each step removes a deduction until you reach take-home pay.
The flow: Gross → Pension → Rent Relief → Taxable → PAYE → Other Deductions → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + housing + transport + other allowances |
| Pension (employee) | Mandatory retirement savings | 8% of basic + housing + transport |
| Rent relief | Replacement for old CRA where the employee qualifies | 20% of annual rent paid, capped at NGN 500,000 per year |
| Taxable Income | What PAYE is calculated on | Gross − eligible pension − documented reliefs |
| PAYE Tax | Pay-As-You-Earn income tax | Current bands: 0%, 15%, 18%, 21%, 23%, 25% |
| NHF or health deductions | Other statutory or employer-plan deductions where applicable | Check the line item, base and supporting policy |
| Net Pay | What you receive | Gross − pension − PAYE − other approved deductions |
What replaced CRA in 2026?
The old Consolidated Relief Allowance is no longer the current planning model for Nigerian PAYE. Current summaries of the Nigeria Tax Act 2025 describe a rent relief equal to 20% of annual rent paid, capped at NGN 500,000, plus the new tax bands where the first NGN 800,000 of annual income falls in the 0% band.
If your January 2026 and later payslip still shows the old CRA formula, ask payroll whether the system has been updated for the new Nigeria Tax Act. If it shows rent relief, check that HR has collected the rent evidence it needs and that the relief is not treated as an automatic NGN 500,000 deduction for everyone.
Verify your numbers instantly with our Nigeria PAYE calculator.
Kenya: from gross to net
The flow: Gross → NSSF → SHIF → AHL → Taxable → PAYE → Personal Relief → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + allowances + commissions |
| NSSF | National Social Security Fund | From February 2026, 6% employee contribution up to a maximum of KES 6,480 per month |
| SHIF | Social Health Insurance Fund | 2.75% of gross salary, with current minimum rules and no upper cap |
| AHL | Affordable Housing Levy | 1.5% of gross salary |
| Taxable Income | What PAYE is calculated on | Gross − NSSF − SHIF − AHL |
| Gross PAYE | Tax from the 5-band table | 10%, 25%, 30%, 32.5%, 35% |
| Personal Relief | Monthly tax credit | KES 2,400 |
| Insurance Relief | Relief for qualifying insurance policies | KRA lists 15% of qualifying premiums, subject to the annual cap |
| Net PAYE | Tax after reliefs | Gross PAYE − personal relief − qualifying reliefs |
| Net Pay | What you receive | Gross − NSSF − SHIF − AHL − Net PAYE |
SHIF vs the old NHIF: why your deduction changed
If you've been working in Kenya for a few years, you probably noticed your health insurance deduction change in 2024. Under NHIF, your contribution was a fixed amount based on your income bracket (KES 500 to KES 1,700 per month). Under SHIF, it's 2.75% of your gross salary with no cap.
For someone earning KES 100,000 monthly, SHIF is KES 2,750 before any other payroll deductions. From February 2026, the NSSF ceiling is also higher than the older KES 2,160 figure, so a stale payroll system can understate pension contributions and overstate take-home pay.
Run your full Kenya payslip numbers with our Kenya PAYE calculator.
South Africa: from gross to net
The flow: Gross → UIF → Pension/RA (if applicable) → Taxable → PAYE → Rebates → Medical Credits → Net
| Line Item | What It Is | How It's Calculated |
|---|---|---|
| Gross Salary | Total pay before deductions | Basic + benefits + allowances |
| UIF | Unemployment Insurance Fund | 1% of salary (capped at earnings ceiling) |
| Pension/RA | Retirement contributions (if applicable) | Tax-deductible up to 27.5% of remuneration, max R 350,000/year |
| Taxable Income | What PAYE is calculated on | Gross − UIF − Pension contributions |
| Gross PAYE | Tax from SARS 7-bracket table | 18% to 45% |
| Primary Rebate | Age-based tax credit | R 17,820/year for taxpayers under 65 in 2026/27 |
| Medical Tax Credits | Credit for medical scheme | R 376/month (member) + R 376 (first dependant) + R 254 each additional |
| Net PAYE | Tax after rebates and credits | Gross PAYE − Rebates − Medical Credits |
| Net Pay | What you receive | Gross − UIF − Pension − Net PAYE − Medical Aid (if deducted) |
UIF: small deduction, big safety net
UIF is South Africa's statutory unemployment insurance. If you lose your job, you can claim benefits when the rules are met. UIF can also support maternity, adoption and illness claims, so the payslip deduction is not just an accounting line.
The employee contribution is 1% of remuneration, matched by your employer, subject to the applicable UIF earnings ceiling. See our UIF guide for claiming details.
Medical tax credits: check the 2026/27 amounts
If you belong to a medical scheme, the medical tax credit directly reduces PAYE. For the tax year starting 1 March 2026, current summaries show R 376 per month for the taxpayer, R 376 for the first dependant, and R 254 for each additional dependant. If your payroll still uses the older R 364 and R 246 amounts after March 2026, ask payroll to check the tax year table.
Verify with our South Africa PAYE calculator.
Common payslip errors to watch for
Nigeria
- Old CRA still showing: for 2026 payroll, ask why the payslip still uses CRA instead of the new rent-relief and tax-band model.
- Wrong pension base: check the pension base your employer uses and whether eligible pension is deducted before PAYE.
- Missing rent evidence: rent relief is capped and evidence-based, not a universal flat deduction.
Kenya
- Old NHIF rate instead of SHIF: if your deduction is a legacy band amount instead of 2.75% of gross salary, ask payroll to review the setup.
- Old NSSF ceiling: from February 2026, the maximum employee contribution is commonly summarized as KES 6,480 per month.
- AHL remittance risk: AHL is 1.5% employee plus 1.5% employer and is due through the KRA process by the stated deadline.
South Africa
- Missing medical tax credits: if you have medical aid and the credits are not showing, ask payroll to check the current SARS table.
- Wrong tax bracket: SARS updates brackets annually. If your employer is using last year's tables, your PAYE could be slightly off.
- Pension contribution above limit: tax-deductible pension is capped at 27.5% of remuneration or R 350,000/year. Over-contributions don't get tax relief.
What to do if your payslip is wrong
First, calculate what the correct deductions should be using our PAYE calculators. Then compare your calculated numbers against your actual payslip. If there's a discrepancy:
- Raise it in writing. Email your HR or payroll department. Don't just mention it in passing. You want a record.
- Be specific. Say exactly which line is wrong and what the correct amount should be. Attach your calculations.
- Reference the source. In Nigeria, cite the Nigeria Tax Act 2025 summaries or your employer tax memo. In Kenya, cite KRA payroll guidance and current NSSF/SHA notices. In South Africa, cite SARS 2026/27 tax tables.
- Follow up. If the error isn't corrected within one pay cycle, escalate. In Kenya, you can file a complaint with KRA. In Nigeria, file through the tax authority. In South Africa, SARS.
- Keep your payslips. Store every payslip you receive. If you need to claim a tax refund later, you'll need them as evidence. Save them to your AfroTools dashboard for safekeeping.
Payslip errors aren't always malicious. Most of the time, it's an outdated payroll system or a payroll officer who hasn't updated the tax tables. But the result is the same: you lose money. Check your payslip every month. It takes five minutes.
Sources Checked On June 17, 2026
- PwC Nigeria individual personal income tax summary, last reviewed May 29, 2026
- PwC Nigeria sample personal income tax calculation, last reviewed May 29, 2026
- Kenya Revenue Authority PAYE guidance
- KRA Affordable Housing Levy collection notice
- SARS employer tax deduction tables for 2026/27
- South African Treasury and SARS 2026/27 tax guide
- PwC South Africa medical tax credit summary, last reviewed June 2026
Verify Your Payslip Now
Use our free PAYE calculators to check if your deductions are correct.
Nigeria PAYE → Kenya PAYE → SA PAYE →Frequently Asked Questions
The old Consolidated Relief Allowance is no longer the current 2026 PAYE model. Current summaries describe rent relief for eligible taxpayers: 20% of annual rent paid, capped at NGN 500,000, alongside the new 0% to 25% personal income tax bands.
SHIF is 2.75% of gross salary, subject to the current minimum rules and with no upper cap. Unlike the old NHIF bands, the amount moves with your actual gross salary, so colleagues on different pay will see different SHIF deductions.
Yes. UIF stands for Unemployment Insurance Fund. Both employee and employer contribute 1% of remuneration, subject to the applicable earnings ceiling. It supports claims such as unemployment, maternity, adoption and illness benefits when the rules are met.